With the Grail carve-out behind it, Illumina, Inc.'s (NASDAQ: ILMN ) financials are rebounding, helping the stock sentiment. That's not all; a second phase of re-rating should come from a top-line re-acceleration from 2025 to 2027 as delayed and elongated CAPEX cyclesHello readers! Passionate about technology, my focus will be on finding and analyzing companies that can play a relevant role in today's geopolitics, leverage their IP, and eventually, with time, become new leaders. Therefore, the investment st ...

Illumina Inc. (ILMN) reported third-quarter 2024 adjusted earnings per share (EPS) of $1.14, which beat the Zacks Consensus Estimate of 87 cents by a stupendous 31.0%. The bottom line was above the year-ago figure of 33 cents.The adjustments exclude the impact of GRAIL’s pre-acquisition net operating losses on GILTI, the utilization of U.S. foreign tax credits, and the Pillar Two global minimum top-up tax, which became effective from the first quarter of 2024.Including one-time items, the company’s GAAP EPS ...

Illumina (ILMN) reported $1.08 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 3.5%. EPS of $1.14 for the same period compares to $0.33 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.07 billion, representing a surprise of +0.48%. The company delivered an EPS surprise of +31.03%, with the consensus EPS estimate being $0.87.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $1.1 billion, in line with expectations [10] - Non-GAAP operating margin was 22.6%, and diluted earnings per share were $1.14, exceeding expectations [12] - Revenue in the Americas was down 6% YoY, Europe was up 12%, EMEA was up 7%, and Greater China was down 23% [10] - The company placed an additional 58 NovaSeq X Plus instruments, bringing the total installed base to 527, with 40% shipped to clinical customers [11] - The X-Series surpassed $1 billion in cumulative revenue [11] Business Line Data and Key Metrics - Sequencing consumables revenue was $741 million, up 7% YoY, driven by strong uptake in X consumables [29] - Sequencing instruments revenue was $104 million, a 42% YoY decline, slightly behind expectations [31] - Sequencing service and other revenue was $150 million, up 6% YoY, driven by strategic partnerships and high instrument service contract revenue [33] - More than 55% of high-throughput gigabases sequenced and over 35% of high-throughput consumables revenue were on the NovaSeq X series [29] Market Data and Key Metrics - Total sequencing GB output on connected high and mid-throughput instruments grew over 40% YoY, with robust growth from both clinical and research customers [31] - The company expects almost half of high-throughput consumables revenue to transition to the X series by mid-2025 [30] Company Strategy and Industry Competition - The company aims to drive high single-digit revenue growth and 500 basis points of operating margin expansion by 2027, with annual EPS growth in the double-digits to teens over the next three years [14] - Key priorities include deeper customer collaboration, continuous innovation, and operational excellence [15] - The company recently launched the MiSeq i100, addressing demand for flexible solutions for smaller-scale projects with faster turnaround times [19] - The company is developing comprehensive whole genome sequencing and the five-phase genome, which will launch over the next 12 to 18 months [21] Management Commentary on Operating Environment and Future Outlook - The near-term macroeconomic environment remains constrained, and the company expects 2024 revenue growth to be slightly lower than prior guidance [13] - The company is raising guidance for 2024 operating margin and earnings per share, reflecting progress in operational excellence and margin expansion [13] - The company expects to return to growth in 2025, with high single-digit revenue growth by 2027 [49] Other Important Information - The company divested GRAIL in June 2024, and all financial information discussed excludes GRAIL [5][27] - The company issued $500 million in debt at a 4.65% coupon to redeem a high-cost $750 million delayed broad term loan, reducing leverage and interest rates [38] - The company repurchased 770,000 shares for $98 million at an average price of $127.71 per share [41] Q&A Session Summary Question: Guidance and Clinical Transition Concerns [50] - The company does not foresee a "clinical cliff" for consumable revenue, as the transition to the X series is gradual, typically taking 12-18 months [52][55] - Q4 consumables guidance assumes a typical seasonal decline due to fewer working days and holidays [56][57] Question: Mid-Throughput Decline and 2025 Outlook [59] - The mid-throughput decline was driven by macroeconomic pressures and competition, particularly in the U.S. and Europe [60][61] - The company expects to return to positive growth in 2025, with high single-digit growth by 2027 [63] Question: Price per GB and Margin Expansion [65] - The price per GB impact was closer to 25%, within the expected range of 20-25% [67] - The company is targeting 500 basis points of margin expansion from a base of 21% [67][68] Question: NGS Consumable Revenue Growth [71] - Consumables revenue grew 7% in Q3, with both research and clinical segments showing strong growth [73] Question: Clinical X Transition and Pricing Dynamics [76] - The transition to the X series is driven by its benefits, including lower costs and improved workflows, with customers gradually moving assays over time [77][78] - Multi-year contracts are not instrument-specific and will continue with the X series [83] Question: Elasticity of Demand and Q4 Seasonality [85] - Customers are expanding assays and increasing sequencing depth, driving volume growth despite lower prices [89] - Q4 seasonality is expected to impact consumables due to fewer working days and inventory management [90][91] Question: Revenue Guidance Change [93] - The revenue guidance change is primarily due to slower deal closures in the instruments business, with the impact spread across instruments, consumables, and services [94][96] Question: Macro Environment and Growth Outlook [99] - The company sees consumables growth as a leading indicator of improvement, but the macroeconomic environment remains a headwind [100][101] Question: Margin Expansion and Cost Savings [103] - The company achieved $100 million in cost savings in 2024 and is targeting an additional $200 million, with a focus on COGS and operating expenses [107][108] Question: Free Cash Flow and Share Buybacks [112] - The company generated $284 million in free cash flow in Q3 and plans to continue share buybacks and tuck-in M&A to drive growth [113][117] Question: End Market Dynamics [120] - Europe showed steady growth, while the Americas faced tougher comparisons due to higher X instrument placements in the prior year [122] Question: Single-Cell Opportunity [124] - The acquisition of Fluent BioSciences expands the single-cell market opportunity, with a focus on enabling large-scale experiments [125][126] Question: MiSeq i100 and XLEAP Impact [130] - The MiSeq i100 is expected to drive growth in the low-throughput segment, with significant interest from customers [131][133] - Over 60% of NextSeq 1K/2K users have adopted the XLEAP chemistry, showing strong market reception [135]

Illumina (ILMN) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 31.03%. A quarter ago, it was expected that this genetic testing tools company would post earnings of $0.12 per share when it actually produced earnings of $0.36, delivering a surprise of 200%.Over the last four quarters, ...

Financial Performance - Core Illumina revenue for Q3 2024 was $1.1 billion, down 2% from Q3 2023 on a constant currency basis[2] - Core Illumina GAAP operating margin for Q3 2024 was 68.6%, with a non-GAAP operating margin of 22.6%[2] - Core Illumina GAAP diluted EPS for Q3 2024 was $4.03, and non-GAAP diluted EPS was $1.14[2] - Fiscal year 2024 Core Illumina revenue guidance was lowered to a decline of ~3% from fiscal year 2023, with Q4 2024 revenue expected to be approximately $1.07 billion[2] - Fiscal year 2024 Core Illumina non-GAAP operating margin guidance was raised to a range of 21% to 21.5%[2] - Fiscal year 2024 Core Illumina non-GAAP diluted EPS guidance was raised to a range of $4.05 to $4.15[2] - Total revenue for Q3 2024 was $1.08 billion, a decrease of 4% compared to $1.119 billion in Q3 2023[20] - Net income for Q3 2024 was $705 million, compared to a net loss of $754 million in Q3 2023[20] - Core Illumina constant currency revenue for Q3 2024 was $1.078 billion, a decrease of 2% compared to $1.101 billion in Q3 2023[25] - Consolidated constant currency revenue for Q3 2024 was $1.078 billion, a decrease of 3% compared to $1.114 billion in Q3 2023[26] - Non-GAAP diluted earnings per share for the three months ended September 29, 2024, was $1.14, compared to GAAP diluted earnings per share of $4.03[28] - Non-GAAP net income for the three months ended September 29, 2024, was $181 million, compared to GAAP net income of $642 million[29] - Non-GAAP diluted earnings per share for the nine months ended September 29, 2024, was $3.20, compared to GAAP diluted earnings per share of $4.88[28] - Non-GAAP net income for the nine months ended September 29, 2024, was $510 million, compared to GAAP net income of $777 million[29] - Non-GAAP diluted earnings per share for the nine months ended October 1, 2023, was $0.73, compared to GAAP diluted loss per share of $(6.23)[31] - Non-GAAP net income for the nine months ended October 1, 2023, was $115 million, compared to GAAP net loss of $(986) million[32] - Non-GAAP gross profit for the consolidated operations was $732 million, representing 65.4% of revenue[34] - Non-GAAP operating profit for the consolidated operations was $93 million, representing 8.3% of revenue[34] - Core Illumina non-GAAP gross profit was $2.228 billion, representing 69.0% of revenue[36] - Consolidated non-GAAP operating profit was $362 million, or 11.1% of revenue[36] - Non-GAAP gross profit for Core Illumina is $2,208 million, representing 66.1% of revenue[38] - Non-GAAP operating profit for Core Illumina is $681 million, representing 20.4% of revenue[38] - Non-GAAP operating profit for Consolidated is $196 million, representing 5.8% of revenue[38] Expenses and Margins - Gross margin for Q3 2024 increased to 68.9% from 64.7% in Q3 2023, driven by cost savings and improved productivity[5] - Research and development expenses for Q3 2024 were $253 million, a decrease from $315 million in Q3 2023[20] - Selling, general and administrative expenses for Q3 2024 were $239 million, a decrease from $303 million in Q3 2023[20] - GAAP R&D expense for the consolidated operations was $315 million, accounting for 28.1% of revenue[34] - Non-GAAP R&D expense for the consolidated operations was $312 million, representing 27.8% of revenue[34] - GAAP SG&A expense for the consolidated operations was $303 million, accounting for 27.0% of revenue[34] - Non-GAAP SG&A expense for the consolidated operations was $328 million, representing 29.3% of revenue[34] - Non-GAAP R&D expense for Core Illumina is $754 million, representing 22.5% of revenue[38] - Non-GAAP SG&A expense for Core Illumina is $773 million, representing 23.1% of revenue[38] Cash Flow and Assets - Free cash flow for Q3 2024 was $284 million, compared to $94 million in the prior year period[7] - Free cash flow for Q3 2024 was $284 million, compared to $94 million in Q3 2023[23] - Total assets decreased to $6.014 billion as of September 29, 2024, from $10.111 billion as of December 31, 2023[17] - Stockholders' equity decreased to $2.125 billion as of September 29, 2024, from $5.745 billion as of December 31, 2023[18] - Cash and cash equivalents decreased to $869 million as of September 29, 2024, from $1.048 billion as of December 31, 2023[17] Legal and Tax Adjustments - Legal contingency and settlement adjustments reduced GAAP net income by $488 million for the three months ended September 29, 2024[29] - Goodwill and intangible impairment adjustments increased GAAP net income by $821 million for the nine months ended October 1, 2023[32] - GILTI, US foreign tax credits, and global minimum top-up tax adjustments increased non-GAAP net income by $54 million for the three months ended September 29, 2024[29] - Incremental non-GAAP tax expense reduced non-GAAP net income by $26 million for the three months ended September 29, 2024[29] - GAAP goodwill and intangible impairment for the consolidated operations was $821 million, accounting for 73.4% of revenue[34] - GAAP legal contingency and settlement was $(474) million, or (14.4)% of revenue[36] - Non-GAAP other expense was $(32) million, or (1.0)% of revenue[36] - Consolidated GAAP operating loss was $(1.008) billion, or (30.8)% of revenue[36] - Strategic investment related loss was $339 million, or 10.4% of revenue[36] - Goodwill and intangible impairment related to GRAIL is $821 million, representing 24.3% of revenue[38] - Legal contingency and settlement reversal for Q3 2024 is $14 million, representing 0.4% of revenue[38] Product and Innovation Updates - The company introduced the MiSeq i100 Series, Illumina's simplest and fastest benchtop sequencers[8] - The company announced plans to provide updates on key innovations in whole-genome sequencing, proteomics, and single-cell technology at the American Society of Human Genetics Annual Meeting[8] Other Financial Metrics - GAAP other expense, net for the consolidated operations was $(28) million, accounting for (2.6)% of revenue[34] - Non-GAAP other expense, net for the consolidated operations was $(6) million, representing (0.5)% of revenue[34] - Strategic investment-related loss, net for the consolidated operations was $19 million, accounting for 1.8% of revenue[34] - Core Illumina GAAP gross profit was $2.181 billion, or 67.6% of revenue[36] - Non-GAAP tax provision for Core Illumina is $48 million, representing 21.0% of revenue for the three months ended September 2024[43] - Non-GAAP tax provision for Consolidated is $48 million, representing 21.0% of revenue for the three months ended September 2024[44] - Non-GAAP tax provision for Consolidated is $77 million, representing 23.4% of revenue for the nine months ended September 2024[44]

Core Illumina revenue of $1.1 billion for Q3 2024, down 2% from Q3 2023 and on a constant currency basis Core Illumina GAAP operating margin of 68.6% and non-GAAP operating margin of 22.6% for Q3 2024 Core Illumina GAAP diluted EPS of $4.03 and non-GAAP diluted EPS of $1.14 for Q3 2024 Lowered fiscal year 2024 Core Illumina revenue guidance to decline ~3% from fiscal year 2023; expect Q4 2024 Core Illumina revenue of approximately $1.07 billion Raised fiscal year 2024 Core Illumina non-GAAP operating margi ...

New, groundbreaking technology delivers Illumina's most comprehensive genome yet; early results from Broad Clinical Labs demonstrate a highly simplified workflow, ultra-long phasing, high-resolution insights into complex genomic variation, and enhanced long-range information   Illumina and customers will also showcase new details on complete proteomics solution and latest data on Fluent single-cell technologySAN DIEGO, Oct. 31, 2024 /PRNewswire/ -- Illumina, Inc. (NASDAQ: ILMN), a global leader in DNA sequ ...

Wall Street analysts forecast that Illumina (ILMN) will report quarterly earnings of $0.87 per share in its upcoming release, pointing to a year-over-year increase of 163.6%. It is anticipated that revenues will amount to $1.08 billion, exhibiting a decline of 3.6% compared to the year-ago quarter. The consensus EPS estimate for the quarter has undergone an upward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed th ...

Sequencing giant Illumina Inc. (ILMN) is set to release third-quarter 2024 results on Nov. 4 after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.According to the Zacks Consensus Estimate, the company’s third-quarter earnings are expected to surge by 163.6% to 87 cents per share. The estimate has remained unchanged in the past 60 days. However, the Zacks Consensus Estimate for revenues currently stands at $1.08 billion, a 3.7% decrease compared to the last year.Ima ...